UK reviews tariffs on Chinese cars to align with EU

The UK is reviewing whether to impose tariffs on Chinese cars. London wants to align its approach with the EU and strengthen its bid to join the “Made in Europe” legislation, the Industrial Accelerator Act, which is intended to support European manufacturing, including the auto and chemicals sectors.

Brussels raised tariffs during discussions with London. The EU believes the UK would need comparable trade protections to create a level playing field, including duties matching Europe’s up to 45% tariffs on Chinese cars.

Tariffs would require an investigation

Tariffs would probably trigger a hostile response from Beijing and mark a departure from the previous government’s policy of treating China as an important source of economic growth. The process could also be lengthy: the EU took 13 months from launching its state-subsidy investigation to imposing duties in October 2024.

The UK has argued that it does not need the same trade barriers as Brussels because it does not face a comparable trade deficit. Business Secretary Jonathan Reynolds said last week that tariffs on Chinese electric vehicles remained under close review.

Carmakers warn of a difficult trade-off

Experts have described the issue as a difficult trade-off for the UK car industry: Chinese investment could support manufacturers, while access to Europe is crucial for smaller companies. Massimiliano Messina, Nissan’s chair in Europe, said the continent should not allow Chinese vehicles to flood the market through Britain.

Nissan is in talks with Chinese company Chery about manufacturing cars at its Sunderland plant. Such production would fit the EU’s policy because Chinese companies manufacturing in Europe and employing local staff are viewed by Brussels as less of a threat; BYD vehicles made in Hungary will not face import duties.

Chinese brands expand their UK share

Figures from the Society of Motor Manufacturers and Traders show that BYD, Leapmotor and Jaecoo more than tripled their combined share of the UK new-car market in 2026, reaching 12% of sales. BYD’s share reached 5.75% in September, up from the same month a year earlier.

BYD sold 68,000 cars in the UK during the year to date, increasing its share from 2.2% to 3.93%. Jaecoo sales rose 223% to 58,000 vehicles, while Leapmotor sales increased 765%, from about 1,500 cars in 2025 to more than 13,000 in 2026.

Mike Hawes, chief executive of the SMMT, called for any tariff decision to rely on robust evidence and preserve an open, competitive market. He warned that excluding UK-built vehicles from the “Made in Europe” scheme could damage integrated industries and the €80bn trading relationship.

A UK government spokesperson confirmed that tariffs on Chinese EVs have not been introduced. The government is continuing to engage with industry so its approach reflects the sector’s and the country’s interests.